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Universal basic capital would create a fair AI economy

Predistribution, not redistribution, is needed to close the inequality gap

The writer is an investor, philanthropist and co-founder of the Berggruen Institute

In the coming decades, European countries, like other developed nations, will become AI economies as the technology spreads across all enterprises from accounting to grocery stores to factories. Wealth creation and productivity growth will boom, but they will be increasingly divorced from jobs and income. Economic disparities will accelerate with the diminishing value of labour.

The inequality gap between those who own the technology directly or through investments and those who do not will inexorably grow. Bridgewater founder Ray Dalio warned recently that the top 1-10 per cent of people would benefit more than anyone else from the AI revolution while multitudes would be losers. Our divided societies will fracture further unless there is some form of distribution that shares the wealth.

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